Page 11 - Study Session 1 - Psychology Home Study Course
P. 11
Markets
• When you are short-term trading, you are trading the psychology of the markets and ultimately
trading against your own psychology!
• Markets move from cycles of greed and fear. Extreme market highs or lows represent the
extreme capitulation of these swings as traders react own their own high levels of fear and
greed emotions!
• One of your goals as a trader is to remain objective and avoid making emotional trading
decisions!
• Remaining objective allows you to take advantage of other trader’s irrational emotions
associated with fear and greed!
• Without mastering your own psychology, you will be subject to fear and greed and thus make
emotional trading decisions that can be exploited by other more rational traders!
• This is why developing your psychology in trading is so very important!
